MANUFACTURER FLOORING PLANS PAYABLE

Accrued liabilities consist of the following (In millions):


	December 31, 2025	December 31, 2024
Accrued equipment purchases .......................................................................	$281	$101
Accrued expenses ...........................................................................................	65	31
Accrued salaries and benefits .........................................................................	57	37
Payable to OWN Program participants ..........................................................	53	46
Insurance claims, including incurred but not reported ...................................	43	29
Accrued interest .............................................................................................	33	33
Deferred revenue ............................................................................................	30	20
Manufacturer liability ....................................................................................	12	5
Real and personal property tax payable .........................................................	13	8
Sales and income tax payable ........................................................................	12	15
Other ..............................................................................................................	10	19
Total accrued liabilities .............................................................................	$609	$344

Manufacturer flooring plans payable are financing arrangements with OEMs under standard terms and

conditions for the purchase of equipment inventory and rental equipment. The Company makes payments to the

OEM in accordance with the original terms of the financing agreements. However, the Company may sell equipment

that is financed under manufacturer flooring plans prior to the original due date of the financing agreement. The

related manufacturer flooring plan payable is then paid at the time the equipment being financed is sold. The

manufacturer flooring plans payable are secured by the equipment being financed. Changes in manufacturer flooring

plans payable are reported as operating cash flows in the accompanying consolidated statements of cash flows.

The interest cost incurred on the manufacturer flooring plans ranges from 0% to variable rates commonly

referenced in the market, plus an applicable margin. Certain manufacturer flooring plans provide for a one to twelve

month reduced interest rate term or a deferred payment period. For the years ended December 31, 2025, 2024 and

2023, interest expense related to these arrangements were $3 million, $3 million and $1 million, respectively, and

included in interest expense, net, in the consolidated statements of net income. At December 31, 2025, the

manufacturer flooring plans payable have due dates during 2026 based on original financing terms.